2015-329SALega1 \0ur Documents \Ordinances \15 \Shelter Lease Ordinance.doc
ORDINANCE NO. 2015 -329
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER, OR
HIS DESIGNEE, TO EXECUTE ON BEHALF OF THE CITY OF DENTON A LEASE OF
PROPERTY BETWEEN THE CITY OF DENTON AND MONSIGNOR KING OUTREACH
CENTER, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE, FOR THE
OPERATION OF A HOMELESS SHELTER AT 300 WOODROW LANE; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton hereby finds that the Lease Agreement
between the City and Monsignor King Outreach Center, attached hereto and made a part hereof by
reference (the "Lease "), serve a municipal and public purpose and is in the public interest; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECITION 1. The findings set forth in the preamble of this Ordinance are incorporated by
reference into the body of this Ordinance as if fully set forth herein.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Lease
and to exercise all rights and duties of the City under the Lease, including authorizing and ratifying
the expenditure of funds.
SECTION This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the _... . ��. ....�......�............������� �., 2015,
day of
lIIRIS WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: - y
LEASE AGREEMENT
This LEASE AGREEMENT ( "Lease ") is entered into by the City of Denton, a Texas
home -rule municipal corporation, ( "Landlord ") and the Monsignor King Outreach Center, a Texas
non - profit corporation, ( "Tenant "). Landlord leases to Tenant, and Tenant leases from Landlord,
the premises and improvements ( "Leased Premises "), known as 300 S. Woodrow Lane, Denton,
Denton Landlord, Texas, or as more particularly described in the attached Exhibit A.
The primary term of this Lease ( "Lease Term ") is One Hundred and Twenty (120) months,
commencing on _Q`. , 2015, and ending on Q,! 01 a. 2025,
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with the following terms, conditions, and covenants:
1. Use; Limitations on Use; Non - Discrimination.
a. Use. Tenant will use the Leased Premises as a homeless shelter and offices
related to social services provided to homeless individuals.
b. Limitations on Use. Tenant may not use or permit any part of the Leased
Premises to be used for:
i. Any activity which is a nuisance or is offensive, noisy, or dangerous;
ii. Any activity that violates any applicable law, regulation, zoning
ordinance, restrictive covenant, governmental order, or the Lease.
iii. Any hazardous activity that would require any insurance premium
on the Property or Leased Premises to increase or would void any such insurance.
iv. Any activity that violates any applicable federal, state, or local law,
including, but not limited to, those laws related to public safety, air quality, water
quality, Hazardous Materials, wastewater, waste disposal, air emissions, or other
environmental matters.
V. The permanent or temporary storage of any hazardous material. For
purposes of this Lease "Hazardous Material(s)" means any pollutant, toxic
substance, hazardous waste, hazardous material, hazardous substance, solvent, or
oil as defined by any federal, state, or local environmental law, regulation,
ordinance, or rule existing as of the date this Lease or later enacted.
C. Non - Discrimination. Tenant, for itself, its successors, and assigns, as a part
of the consideration hereof, does hereby covenant and agree as a covenant running with the
land that no person on the grounds of race, religion, color, sex, gender orientation or
national origin shall be excluded from participation in, denied the benefits of, or be
otherwise subjected to discrimination in the use of the Leased Premises.
2. Rent. Rent will be One Dollar and No /Cents ($1.00) per year. Tenant agrees to pay
Landlord at 215 E. McKinney St., Denton, Denton Landlord, Texas, or at another place Landlord
Page 1 of 10 — Lease (300 S. Woodrow Lane)
designates from time to time in writing, as rent for the Leased Premises, one payment of Ten
Dollars and No /Cents ($10.00) on or before the Effective Date.
3. Taxes. Each year during the term of this Lease, Landlord will pay real estate taxes
assessed against the Leased Premises, if assessed. Each year during the Lease Term, Tenant will
pay as additional rent, on receipt of a statement from Landlord together with tax statements or
other verification from the proper taxing authority, real estate taxes assessed against the Leased
Premises.
4. Utilities. Tenant will pay all charges for all utility services to the Leased Premises
including, but not limited to, water, sewer, solid waste, electricity, phone, and internet access.
5. Maintenance and Repair. The Tenant shall provide all ordinary maintenance and
repair including routine custodial maintenance of all improvements, landscaping, fixtures, and
equipment on the Leased Premises such that the Leased Premises are maintained in a clean,
sanitary, good, and safe condition. The Tenant shall not commit or cause or suffer to be committed
any waste on the Leased Premises. The Tenant shall be solely responsible for any repair caused by
Tenant's use of the Leased Premises and for any charges resulting from police, fire, or other
emergency response activities on the Leased Premises due to the Tenant's use. If, after twenty (20)
days' notice from the Landlord, Tenant fails to maintain or repair any part of the Leased Premises
or any improvement, landscaping, fixture or equipment thereon, Landlord may, but shall not be
obligated to, enter upon the Leased Premises and perform such maintenance or repair, and Tenant
agrees to pay the costs of the same to Landlord upon receipt of written demand.
6. Alterations. All alterations, additions, and improvements to the Leased Premises
(except trade fixtures) installed at Tenant's expense will become the Landlords property and must
remain on and be surrendered by Tenant with the Leased Premises on expiration of the Lease Term
or earlier termination of this Lease. Alterations, additions, and improvements to the Leased
Premises by Tenant may be made only with the written consent of the City Manager, or his
designee, which must not be unreasonably withheld. If consent is granted to make alterations,
additions, or improvements to the Leased Premises, the alterations, additions, or improvements
must not commence until Tenant has furnished to Landlord a certificate of insurance showing
coverage in an amount satisfactory to the City Manager that protects Landlord from liability for
injury to any person and damage to any personal property, on or off the Leased Premises, in
connection with the making of alterations, additions, or improvements. No equipment or structure
of any kind will be placed on the roof or elsewhere on the Leased Premises by Tenant without the
written permission of the City Manager, or his designee. If permission is granted by the City
Manager, or his designee, the work or installation will be done at Tenant's expense and in a manner
that does not damage the roof. If it becomes necessary to remove equipment, or structure,
temporarily, so that the roof can be repaired, Tenant will promptly repair at its expense any
damages resulting from the removal. At the termination of this Lease, Tenant must deliver the
Leased Premises in good order and condition, except for only normal deterioration. Any damage
caused by the installation or removal of trade fixtures must be repaired at Tenant's expense if
requested by the City Manager, or his designee, in writing at least 30 days before the Lease Term
expires. All alterations, additions, improvements, and repairs made by Tenant must be made in a
good and workmanlike manner.
Page 2 of 10 — Lease (300 S. Woodrow Lane)
7. Condition of Premises /No Re res rotations. Tenant has examined and
accepted the Leased Premises in their present "AS IS" condition and accepts the Leased
Premises regardless of reasonable deterioration between the date of this Lease and the date
Tenant begins occupying the Leased Premises. Landlord has not made any representations
or warranties whatsoever with respect to the condition or suitability of use of the Leased
Premises or any improvements thereto and no rights, easements or licenses are acquired by
the Tenant by implication unless expressly set forth herein.
8. Insurance. At all, times during the term of this Lease or any extension thereto,
Tenant shall maintain in full force, and affect the following insurance policies:
a. Tenant will maintain commercial general liability insurance with a
minimum coverage of one million dollars ($1,000,000) payable to any one person for
personal injury or death arising out of per occurrence. The general aggregate limit will
apply separately to the Lease and be less than two million dollars ($2,000,000) from use of
the Leased Premises or the Tenant's performance of its obligations under this Lease. The
general liability policy shall name Landlord, its officers, officials, employees, and agents
as additional insured with respect to liability arising out of the Tenant's use of the Leased
Premises and shall not exclude any reasonably anticipated peril related to the Tenant's use
of the Premises such as criminal activity, alcohol /drug use, sexual assault, or assault and
battery.
b. Tenant will maintain Premises, fire and extended coverage insurance in an
amount equal to the replacement value of all improvements, structures, buildings, and
contents located on/in the Premises. The policy shall include Landlord as an insured for its
interest in the Premises.
C. Insurance coverages shall not be suspended, voided, cancelled, or reduced
in limits until after forty -five (45) days prior notice is provided to the Landlord. All
insurance coverages shall be primary to any insurance carried by the Landlord.
d. All insurance required to be maintained by the Tenant under this Lease shall
be placed with insurers authorized to transact business in the State of Texas and with Best's
rating of no less than A.
e. On the effective date of this Lease, and thereafter not less than fifteen (15)
days prior to the expiration dates of the existing policies furnished pursuant to this
paragraph, certificates evidencing the required insurance shall be delivered by the Tenant
to the Landlord. Within fifteen (15) days after the premium on each such policy shall
become due and payable, evidence shall be supplied to the Landlord of such payment. The
Landlord reserves the right to require complete certified copies of all required insurance
policies at any time.
f. Tenant will ensure that any contractor performing renovation, construction,
or major repair work on the Leased Premise shall comply with the insurance requirements
contained in Exhibit B during the full duration of said renovation, construction or repair.
Page 3 of 10 — Lease (300 S. Woodrow Lane)
9. Compliance with Laws and Regulations. Tenant will, at its own expense, comply
with all laws, orders, standards, and requirements of all governmental entities with reference to the
use of the Leased Premises. Tenant and Tenant's agents, employees, and invitees will fully comply
with any rules and regulations governing the use of the Leased Premises as required by Landlord.
Landlord may make reasonable changes in rules and regulations from time to time as is advisable
for the safety, care, and cleanliness of the Leased Premises, provided that they are in writing and
do not conflict with this Lease.
10. Suns. Tenant will not post or print any signs at, on, or about the Leased Premises
or paint the exterior walls of the building unless it has Landlord's written consent. Landlord has
the right to remove any sign or signs in order to maintain the Leased Premises or to make any
repairs or alterations.
11. _Right of Entry. Landlord has the right to enter the Leased Premises during normal
business hours (a) to inspect the general condition and state of repair of the Leased Premises, (b) to
make repairs required or permitted under this Lease, or (c) for any other reasonable purpose.
12. Interruption of Utilities. Landlord or Landlord's agent may interrupt or cause the
interruption of utility service paid by Tenant directly to any utility company if the interruption
results from bona fide repairs, construction, or an emergency. Additionally, Landlord or
Landlord's agent may also interrupt or cause the interruption of utility service paid by Tenant
directly to a utility owned or operated by the City of Denton for non - payment.
13. Assignment and Subleasing. Tenant cannot assign this Lease or sublease the
Leased Premises or any interest in it without first obtaining the written consent of the City
Manager, or his designee. An assignment or sublease, without the written consent of the City
Manager, or his designee, is void and can be, at Landlord's option, terminated.
14. Tenant's Default and Removal of Abandoned Property. If Tenant abandons the
Leased Premises or otherwise defaults in the performance of any obligations or covenants in this
Lease, Landlord may enforce the performance of this Lease in any manner provided by this Lease
and Texas law. This Lease may be terminated at Landlord's discretion if abandonment or default
by Tenant continues for a period of thirty (30) consecutive days after Landlord notifies Tenant in
writing of its abandonment or default and of Landlord's intention to declare this Lease terminated.
Notice must be sent by Landlord to Tenant's last known address by certified mail. if Tenant has
not completely removed or cured default within the thirty (30) day cure period, this Lease may be
terminated in accordance with paragraph 35. Thereafter, Landlord or its agents will have the right,
without further notice or demand, to enter the Leased Premises and remove all goods, equipment
or personal property without being deemed guilty of trespass and without waiving any other
remedies for breach of contract or recovery of unpaid rent. On abandonment or default by Tenant,
the remaining unpaid portion of the rent from Section 2 becomes due and payable. Tenant is
presumed to have abandoned the Leased Premises if goods, equipment, or other personal property,
in an amount substantial enough to indicate a probable intent to abandon the Leased Premises, is
being or has been removed from the Leased Premises and the removal is not within the normal
course of Tenant's business. Landlord will have the right to store any of Tenant's personal property
that remains on the abandoned Leased Premises, and in addition to Landlord's other rights,
Page 4 of 10 — Lease (300 S. Woodrow Lane)
Landlord may dispose of the stored personal property if Tenant does not claim the goods,
equipment or personal property within sixty (60) days after the date the goods, equipment or
personal property is stored, if Landlord delivers by certified mail to Tenant at Tenant's last known
address a notice stating that Landlord may dispose of Tenant's goods, equipment or personal
property if Tenant does not claim the goods, equipment or personal property within sixty (60) days
after the date the goods, equipment or personal property is stored.
15. Landlord's Default. If Landlord breaches any covenant, warranty, term, or
obligation of this Lease, Landlord's failure to cure the breach or commence a good -faith effort to
cure it within ten (10) days after Landlord's receipt of written notice from Tenant regarding
Landlord's default will be considered a default and will entitle Tenant to either terminate this Lease
or cure the default and make the necessary repairs, with any expense incurred by Tenant to be
reimbursed by Landlord after reasonable notice of the repairs and expenses incurred. If any utility
services furnished by Landlord are interrupted and continue to be interrupted despite the good -
faith efforts of Landlord to remedy the interruption, Landlord will not be liable in any respect for
damages to the person or Leased Premises of Tenant or Tenant's employees, agents, or guests, and
the interruption will not be construed as grounds for constructive eviction or abatement of rent.
Landlord will use reasonable diligence to promptly repair and remedy an interruption.
16. Tenant's Default. The following events are deemed events of default by the Tenant
under this Lease:
a. If the Tenant shall be in default of the performance of any covenant,
warranty, term, or obligation of this Lease, and if such default is not cured within thirty
(30) days after written notice thereof is given by the Landlord; or if such default should be
of such a nature that it cannot be cured completely within such thirty (30) day period, if the
Tenant shall not have promptly commenced within such thirty (30) day period or shall not
thereafter proceed with reasonable diligence and in good faith to remedy such default.
b. If the Tenant shall be adjudged a bankruptcy, make a general assignment
for the benefit of creditors, or take the benefit of any insolvency act, or if a receiver or
trustee in bankruptcy shall be appointed for the Tenant and such appointment is not vacated
within thirty (30) days.
C. If this Lease shall be assigned or Leased Premises sublet other than in
accordance with the terms of this Lease and such default is not cured with thirty (30) days
after written notice to the Tenant.
d. If any of the above events of default are not cured within the period stated
above, then the Landlord may immediately or at any time thereafter and without further
notice or demand enter onto and upon the Leased Premises or any part thereof and take
absolute possession of the same, fully and absolutely without such reentry working a
forfeiture of the covenant or covenants to be performed by the Tenant for the full term of
this Lease.
e. The statement of specific remedies as set forth above is not exclusive, and
Page 5 of 10 — Lease (300 S. Woodrow Lane)
the Landlord shall, at its option, have available any and all other remedies for default
available to it under the laws of the State of Texas.
17. Tenant's Exclusion. Landlord may not intentionally prevent Tenant from entering
the Leased Premises, except by judicial process, unless the exclusion results from: (a) bona fide
repairs, construction, or an emergency: (b) removing the contents of the Leased Premises
abandoned by Tenant: or (c) changing door locks of the Leased Premises if Tenant is delinquent
in paying any part of the rent. If Landlord or Landlord's agent changes door locks of the Leased
Premises because Tenant is delinquent in paying rent, Landlord or Landlord's agent must place a
written notice on Tenant's front door stating the name and address or telephone number of the
individual or company from which the new key may be obtained. The new key is required to be
provided only during Landlord's regular business hours and only if Tenant pays the delinquent
rent.
18. Lien. Landlord is granted an express contractual lien, in addition to any lien
provided by law, and a security interest in all property of Tenant found on the Leased Premises to
secure the compliance by Tenant with all terms of this Lease.
19. Destruction. If the Leased Premises are partially damaged or destroyed or rendered
partially unfit for occupancy by fire or other casualty, Tenant must give immediate notice to
Landlord of the damage or destruction. Landlord may repair the damage and restore the Leased
Premises to substantially the same condition as immediately before the occurrence of the casualty.
If the Landlord decides to repair and restore the Leased Premises then the repairs will be made at
Landlord's expense. If the Leased Premises are totally destroyed or deemed by Landlord to be
rendered unfit for occupancy by fire or other casualty, or if Landlord decides not to repair or
rebuild, this Lease will terminate and the rent will be paid up until the time of the casualty.
20. Indemnifcation/Hold Harmless. The Tenant shall indemnify, defend, and hold
harmless the Landlord, its employees, officials and agents against any and all claims, demands and
lawsuits, and shall pay all costs and attorney's fees incurred in the defense thereof, for any injury
to persons or Premises damage, including claims of the Tenant's employees, agents and invitees
allegedly resulting from any act, incident, or accident arising from or relating to the Tenant's use
of the Leased Premises. Landlord and its employees and agents are not liable to Tenant or Tenant's
employees, patrons, visitors, invitees, or any other persons for an injury to any of those persons or
for any damage to personal Premises caused by an act, omission, or neglect of Tenant or Tenant's
agents or of any other tenant of the Premises of which the Leased Premises are a part. The Tenant
shall not, by this provision, be required to indemnify, defend or hold harmless the Landlord for
any loss or damage, or cost incurred in defense, which arises out of the sole negligence of the
Landlord. The Tenant's obligation to indemnify the Landlord shall not be relieved by its obligation
to provide insurance coverage set forth herein.
21. Surrender/Holding Over. Tenant shall surrender the Leased Premises at the
expiration of the Lease Term, or extension, in good order, condition and repair, reasonable wear
and tear excepted. Tenant's failure to surrender the Leased Premises when the Lease expires
constitutes a holding over, which will be construed as a tenancy from month to month at a rental
rate of Two Dollars and No /Cents ($2.00) per month.
Page 6 of 10 — Lease (300 S. Woodrow Lane)
22. Condemnation. If any substantial part of the Leased Premises is taken for public
or quasi - public use under governmental law, ordinance, or regulation or by right of eminent
domain, or if the Leased Premises are sold to a condemning authority under threat of
condemnation, this Lease will terminate and the rent will be abated during the unexpired portion
of the Lease, effective from the date of the physical taking of the Leased Premises.
23. Non - waiver of Breach. The failure of either party to insist upon strict performance
of any of the covenants and agreements of this Lease or to exercise any option herein contained in
any one or more instances shall not be construed to be a waiver or relinquishment of any such, or
any other, covenant or agreements; but the same shall be and remain in full force and effect.
24. Time of Essence. Time is of the essence in this Lease.
25. Binding Agreement. Subject to the provisions of this Lease pertaining to
assignment of Tenant's interests, this Lease and all of its terms, provisions, and covenants will
apply to, be binding on, and inure to the benefit of the parties and their respective successors and
assigns.
26. Other Documents. Each party undertakes to execute such additional or other
documents as may be required to fully implement the intent of this Lease.
27. Cumulative Rights and Remedies. The rights and remedies addressed by this
Lease are cumulative and the use of any one right or remedy by either party does not preclude or
waive its right to use any or all other remedies. All rights and remedies under this Lease are given
in addition to any other rights the parties may have by law, statute, ordinance, or other source.
28. Governing Law, This Lease will be governed by and interpreted under the laws of
the State of Texas, regardless of any conflict -of -law rules. Venue for any legal proceeding shall
be Denton County, Texas.
29. Severability. In case any of the provisions contained in this Lease is for any reason
held to be invalid, illegal, or unenforceable in any respect, the invalidity, illegality, or
unenforceability will not affect any other Lease provision and this Lease will be construed as if
the invalid, illegal, or unenforceable provision had never been contained in it.
30. Entire Agreement. This Lease constitutes the entire agreement between the
parties. All understandings, discussions, and agreements previously made between the parties,
written or oral, are superseded by this Lease, and neither party is relying on any warranty,
statement, or representation not contained in this Lease.
31. Amendment. No amendment, modification, or alteration of the terms of this Lease
will be binding unless it is (a) in writing, (b) dated after the date of the Lease, and (c) duly executed
by the parties to the Lease.
32. Attorney's Fees. Any signatory to this Lease who is the prevailing party in any
legal proceeding against any other signatory brought under or with relation to this Lease or this
transaction will be additionally entitled to recover court costs, reasonable attorney fees, and all
Page 7 of 10 — Lease (300 S. Woodrow Lane)
other out -of- pocket costs of litigation, including deposition, travel, and witness costs, from the
non - prevailing party. The term "prevailing party" means the party that has succeeded on a
significant issue in the litigation and achieved a benefit with respect to the claims at issue, taken
as a whole, whether or not damages are actually awarded to that party.
33. Construction. Nothing contained herein shall create the relationship of principal
and agent, of partnership, or of joint venture between the parties hereto.
34. Notices. Notices to either Landlord or Tenant will be sent by prepaid certified mail,
return receipt requested, or by courier delivery to the address of each party as set out below its
respective signature, or by other delivery to the Leased Premises.
35. Termination.
a. Termination by Landlord in Event of Tenant Default. If Tenant fails to
comply with this Lease within thirty (30) days after Landlord notifies Tenant in writing of
Tenant's failure to comply, Tenant will be in default and Landlord may terminate this Lease
by giving a ninety (90) day advance written notice to Tenant.
b. Termination by Landlord for Any Reason. Landlord, no earlier than five (5)
years after the Effective Date, may terminate this Lease for any reason by giving a one
hundred and eighty (180) day advance written notice to Tenant.
C. Termination by Tenant. In the event the Leased Premises is structurally
unsound, destroyed, or damaged by fire, earthquake, act of God or other casualty to such
an extent that Tenant cannot use the Leased Premises in a safe manner for its purposes, it
shall be optional with Tenant to terminate this Lease by giving thirty (30) days advance
written notice to the Landlord. Landlord is under no obligation to repair or replace Leased
Premises damaged or destroyed by any casualty or occurrence.
36. Reimbursement for Value of Approved Tenant Improvements After
Termination Under Paragraph 35. b. If the Lease is terminated under the provisions of the
paragraph 35, b, the Landlord will reimburse the Tenant as soon as practicable, but not later than
sixty (60) days after the termination under paragraph 35.b, for the value of the any Approved
Tenant Improvements. The value of each Approved Tenant Improvement will include the Tenant's
actual cost and may include the value of any in -kind contributions or services related to the
Approved Tenant Improvement and be agreed upon, in writing, by the City Manager and the
Tenant prior to the improvement being made.
37. Extension Option. Tenant may extend this Lease for one (1) renewal period of One
Hundred and Twenty (120) months ( "Renewal Period ") by giving written notice to Landlord
( "Renewal Notice ") no earlier than twelve (12) or later than six (6) months before the Lease Term
expires, provided that at the time of the notice and at the commencement of the Renewal Period,
(a) Tenant remains in occupancy of the Leased Premises and (b) no uncured event of default exists
under the Lease. The Rent payable during the Renewal Period will be Two Dollars and No /Cents
($2.00) per year. Except as provided in this Extension Option, all terms and conditions of the Lease
will continue to apply during each Renewal Period. In addition, the rights granted under this
Page 8 of 10 — Lease (300 S. Woodrow Lane)
Extension Option will terminate on the assignment of the Lease or the subleasing of all or any part
of the Leased Premises.
38. Naming Riizhts Regarding Leased Premises. The naming of the Leased Premises
shall be in accordance the Landlord's policy as set forth in Resolution No. R2012 -007 or as
amended from time to time.
Landlord and Tenant have executed this Lease to be effective as of the date it is executed
by Landlord.
LANDLORD:
CITY OF DENTON,
a Texas home -rule ule ninit cipal corporatkon
(3a.�,��rg °� � �. bell, City � ..�
e C. t� rani y Manager
Signed on w , 2015.
Address:
City of Denton
215 E. McKinney St.
Denton, Texas 76201
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
Page 9 of 10 — Lease (300 S. Woodrow Lane)
TENANT:
'ifO S],(xN(A ING
a Texas r�r�tr,', 6,lit c r ion
_._ � ..e .................. ...............
Roy let l'�q� I" tit
Signed onp''" 2015.
Address:
1205 Palo Verde
Denton, Texas 76210
Page 10 of 10 — Lease (300 S. Woodrow Lane)
Exhibit A
DESCRIPTION OF LEASED PREMISES
The two buildings (Building 1 — approx. 1,600 sf; Building 2 — approx.. 5,779 sD and parking
facilities located at 300 S. Woodrow Lane, Denton, Denton County, Texas as shown as Lot 2 on
the aerial photograph attached to this Exhibit A and identified as Attachment 1 (Lot 2 is outlined
in Red). The buildings and parking facilities are more or less surrounded by a wire mesh fence
topped by barbed wire. The Leased Premises includes only the area shown as Lot 2 on
Attachment 1.
MKOC Lease — Description of Leased Premises
Exhibit B
INSURANCE REQUIREMENTS AND
WORKERS' COMPENSENTATION REQUIREMENTS
STANDARD PROVISIONS:
Without limiting any of the other obligations or liabilities of the Tenant, the Tenant shall
provide and maintain the minimum insurance coverage as indicated hereinafter.
As soon as practicable after execution of the Lease, Tenant shall file with the City of
Denton satisfactory certificates of insurance including any applicable addendum or
endorsements.
All insurance policies proposed or obtained in satisfaction of these requirements shall
comply with the following general specifications, and shall be maintained in compliance
with these general specifications throughout the duration of the Lease, or longer, if so
noted.
• Each policy shall be issued by a company authorized to do business in the State of Texas
with an A.M. Best Company rating of at least A or better.
• Any deductibles or self- insured retentions shall be declared in the proposal. If requested
by the City, the insurer shall reduce or eliminate such deductibles or self- insured retentions
with respect to the City, its officials, agents, employees and volunteers; or, the Tenant
shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
• Liability policies shall be endorsed to provide the following:
■ Name as Additional Insured the City of Denton, its Officials, Agents, Employees
and volunteers.
■ That such insurance is primary to any other insurance available to the Additional
Insured with respect to claims covered under the policy and that this insurance
applies separately to each insured against whom claim is made or suit is brought.
The inclusion of more than one insured shall not operate to increase the insurer's
limit of liability.
Cancellation: City requires 30 day written notice should any of the policies
described on the certificate be cancelled or materially changed before the
expiration date.
• Should any of the required insurance be provided under a claims made form, Tenant shall
maintain such coverage continuously throughout the term of this contract and, without
lapse, for a period of three years beyond the contract expiration, such that occurrences
arising during the contract term which give rise to claims made after expiration of the
contract shall be covered.
Should any of the required insurance be provided under a form of coverage that includes
a general annual aggregate limit providing for claims investigation or legal defense costs
to be included in the general annual aggregate limit, the Tenant shall either double the
Exhibit B
occurrence limits or obtain Owners and Tenants Protective Liability Insurance.
Should any required insurance lapse during the contract term, requests for payments
originating after such lapse shall not be processed until the City receives satisfactory
evidence of reinstated coverage as required by this contract, effective as of the lapse date.
If insurance is not reinstated, City may, at its sole option, terminate this agreement
effective on the date of the lapse.
SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS:
All insurance policies proposed or obtained in satisfaction of this Lease shall additionally
comply with the following marked specifications, and shall be maintained in compliance
with these additional specifications throughout the duration of the Lease, or longer, if so
noted:
A. General Liability Insurance:
General Liability insurance with combined single limits of not less than $1,000,000.00
shall be provided and maintained by the Tenant. The policy shall be written on an
occurrence basis either in a single policy or in a combination of underlying and
umbrella or excess policies.
If the Commercial General Liability form (ISO Form CG 0001 current edition) is used:
• Coverage A shall include premises, operations, products, and completed
operations, independent Tenants, contractual liability covering this contract
and broad form property damage coverage.
• Coverage B shall include personal injury.
• Coverage C, medical payments, is not required.
If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition
and ISO Form GL 0404) is used, it shall include at least:
• Bodily injury and Property Damage Liability for premises, operations, products
and completed operations, independent contractors and property damage
resulting from explosion, collapse or underground (XCU) exposures.
• Broad form contractual liability (preferably by endorsement) covering this
contract, personal injury liability and broad form property damage liability.
B. Automobile Liability Insurance:
Tenant shall provide Commercial Automobile Liability insurance with Combined Single
Limits (CSL) of not less than $500,000 either in a single policy or in a combination of basic
and umbrella or excess policies. The policy will include bodily injury and property damage
liability arising out of the operation, maintenance and use of all automobiles and mobile
equipment used in conjunction with this contract.
Exhibit B
Satisfaction of the above requirement shall be in the forrn of a policy
endorsement for:
• any auto, or
• all owned hired and non -owned autos.
[The below provisions may come into play depending upon what services are being
provided.
Workers' Compensation Insurance
Tenant shall purchase and maintain Workers' Compensation insurance which, in addition
to meeting the minimum statutory requirements for issuance of such insurance, has
Employer's Liability limits of at least $100,000 for each accident, $100,000 per each
employee, and a $500,000 policy limit for occupational disease. The City need not be
named as an "Additional Insured" but the insurer shall agree to waive all rights of
subrogation against the City, its officials, agents, employees and volunteers for any work
performed for the City by the Named Insured.
Professional Liability Insurance
Professional liability insurance with limits not less than $1,000,000.00 per claim with
respect to negligent acts, errors or omissions in connection with professional services is
required under this Agreement.]
Exhibit B
ATTACHMENT 1
[X] Workers' Compensation Coverage for Building or Construction Projects for
Governmental Entities
A. Definitions:
Certificate of coverage ("certificate ")-A copy of a certificate of insurance, a certificate
of authority to self - insure issued by the commission, or a coverage agreement (TWCC-
81, TWCC -82, TWCC -83, or TWCC -84), showing statutory workers' compensation
insurance coverage for the person's or entity's employees providing services on a
project, for the duration of the project.
Duration of the project - includes the time from the beginning of the work on the
project until the Tenant's /person's work on the project has been completed and
accepted by the governmental entity.
Persons providing services on the project ( "subTenant" in §406.096) - includes all
persons or entities performing all or part of the services the Tenant has undertaken to
perform on the project, regardless of whether that person contracted directly with the
Tenant and regardless of whether that person has employees. This includes, without
limitation, independent Tenants, subTenants, leasing companies, motor carriers,
owner - operators, employees of any such entity, or employees of any entity which
furnishes persons to provide services on the project. "Services" include, without
limitation, providing, hauling, or delivering equipment or materials, or providing
labor, transportation, or other service related to a project. "Services" does not include
activities unrelated to the project, such as food /beverage vendors, office supply
deliveries, and delivery of portable toilets.
B. The Tenant shall provide coverage, based on proper reporting of classification codes
and payroll amounts and filing of any overage agreements, which meets the statutory
requirements of Texas Labor Code, Section 401.011(44) for all employees of the
Tenant providing services on the project, for the duration of the project.
C. The Tenant must provide a certificate of coverage to the governmental entity prior to
being awarded the contract.
D. If the coverage period shown on the Tenant's current certificate of coverage ends
during the duration of the project, the Tenant must, prior to the end of the coverage
period, file a new certificate of coverage with the governmental entity showing that
coverage has been extended.
E. The Tenant shall obtain from each person providing services on a project, and provide
to the governmental entity:
1. a certificate of coverage, prior to that person beginning work on the project, so
the governmental entity will have on file certificates of coverage showing
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